§490:8-507  Duty of securities intermediary
to comply with entitlement order.  (a)  A securities intermediary shall
comply with an entitlement order if the entitlement order is originated by the
appropriate person, the securities intermediary has had reasonable opportunity
to assure itself that the entitlement order is genuine and authorized, and the
securities intermediary has had reasonable opportunity to comply with the
entitlement order.  A securities intermediary satisfies the duty if:



(1)  The securities intermediary acts with respect to
the duty as agreed upon by the entitlement holder and the securities
intermediary; or



(2)  In the absence of agreement, the securities
intermediary exercises due care in accordance with reasonable commercial
standards to comply with the entitlement order.



(b)  If a securities intermediary transfers a
financial asset pursuant to an ineffective entitlement order, the securities
intermediary shall reestablish a security entitlement in favor of the person
entitled to it, and pay or credit any payments or distributions that the person
did not receive as a result of the wrongful transfer.  If the securities
intermediary does not reestablish a security entitlement, the securities
intermediary is liable to the entitlement holder for damages. [L 1997, c 33, pt
of §2]